The Next Step in Energy Storage: Aggregation

The Tesla TeamMay 12, 2017

Today, modern utilities and grid operators are utilizing battery technology like never before. The next step in tapping the potential of energy storage is putting together thousands of batteries to form an energy network that utilities can use to deliver immediate value for the electric system. Tesla can now bundle Powerwall and Powerpack batteries into a single portfolio, also called aggregation, to make the grid cleaner and more efficient. Meanwhile, Powerwall customers who allow Tesla and the utilities to use their battery when energy demand is highest will not only have home backup power, but will also receive compensation for its use on the grid.

To introduce this program, Tesla and Green Mountain Power, a utility in Vermont, are working together to bundle Powerwall and Powerpack batteries into a single resource of shared energy for the first time. Green Mountain Power will install Powerpacks on utility land and deploy up to 2,000 Powerwall batteries to homeowners within the utility’s service territory, which will enable more renewable energy and increase grid efficiency. For only $15 a month or a $1,500 one-time fee, customers will receive backup power to their home for the next 10 years, eliminating the need for traditional, manually-controlled backup generators that use fossil fuel. At the same time, Tesla and Green Mountain Power will provide a variety of grid services using the network of installed Powerwall batteries, delivering dynamic capacity (energy reserves that can be dispatched when they are needed most) and additional grid stability, while sustainably lowering costs for all utility customers. Tesla will also work with Green Mountain Power to dispatch the aggregated resource into New England’s wholesale electricity markets, producing additional savings for customers in the region.

The Green Mountain Power program is just the beginning. Tesla is working with energy retailers, grid operators, utilities and aggregators across the globe to unlock the ability for Tesla batteries to deliver grid services while providing reliable power at all times of day. As the deployment of Tesla batteries continues to accelerate, we can scale the adoption of renewable energy, cost-effectively modernize our aging infrastructure, and improve the resilience of our electric grid to benefit everyone.

To find out more about how to aggregate Tesla batteries to strengthen the electric grid and accelerate the transition to sustainable energy, visit tesla.com/utilities.